PUBLIC SERVICE SUPERANNUATION FUND: ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1913.

Appendix to the Journals of the House of Representatives, 1915 Session I, H-26a

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1915. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION FUND: ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1913.

Laid before Parliament in pursuance of Section 48 (4) of the Public Service Classification and Superannuation Act, 1908.

EEPOET BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR TO MAKE THE ACTUARIAL EXAMINATION OF THE PUBLIC SERVICE SUPERANNUATION FUND FOR THE TRIENNIAL PERIOD ENDED 31st DECEMBER, 1913. 1. I have the honour to submit the following report on the Public Service Superannuation Fund as at the 31st December, 1913, as required by section 48 of the Public Service Classification and Superannuation Act, 1908. 2. The scheme, which came into operation on the Ist January, 1908, with the few exceptions set out in section 52, embraces all permanent public servants outside the Government Railways Superannuation Fund and the Teacbers' Superannuation Fund. 3. The contributions and benefits provided by the Act, together with statements showing the progress of active membership, discontinuance of membership from various causes, and the progress of pensions for each year, will be found in Tables I to IV of the appendix to this report. The ages of the contributors at the date of the valuation, together with their contributions and other particulars, are shown in Table V, and the pensions granted during the triennium, with the ages at which they were granted, in Table VI. 4. The number of pensioners on the fund at 31st December, 1913, was 811, drawing pensions amounting to £60,970 per annum; the number of contributors at the same date was 10,809, with aggregate salaries amounting to £1,820,379 and paying contributions at the rate of £118,006 per annum. .5. The income and outgo of the fund during the three years are shown in the Consolidated Revenue Account, which is as follows : — Consolidated Revenue Aooount of the Public Service Superannuation Fund from the Ist January, 1911, to the 31st December, 1913. Income,. £ a _ d Outgo. £ s _ d _ Funds at Ist January, 1911 ... 263,948 0 0 Pensions to members ... 145,067 17 6 Members'contributions ... 321,567 4 5 Pensions to widows and children 8,124 5 5 Government contributions ... 94,000 0 0 Contributions returned . ... 29,174 16 3 I'ransfers from other funds ... 554 16 0 Compensation .... ... 6,605 1.4 10 Interest ... ... ... 49,706 18 0 Transfers to other funds 35 13 11 Fines ... ... ... 789 0 8 Salaries ... ... ... 2,458 2 1 Public Trust Office commission 396 15 8 Travelling and office expenses... 774 17 6 Other payments ... ... 13 9 8 Funds at 31st December, 1913... 537,914 6 3 £730,565 19 1 £730,565 19 1 Valuation. 6. The rate of interest used in the valuation was 4 per cent. The funds are invested with the Public Trustee at 4J- per cent., and whilst there is no doubt that a more remunerative rate

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of interest could be obtained at the present time by direct investment, a higher average rate than 4 per cent, could not be assumed with safety for the long period involved in a pension scheme. 7. The Experience Table (Table VII) contains the rates per cent, per annum of withdrawal, mortality, retirement on pension, and increase of salary assumed in arriving at the liability. These have as far as possible been calculated from the experience of the fund itself, but owing to the limited time the scheme has been in operation —six years —the data are not always sufficient, consequently the death-rates amongst males have been arrived at by including the experience of the salaried division of the Government Railways (1903-1912), and the death-rate and rate of retirement on pension amongst females by including the experience of the female teachers. The Life and Service Table deduced from these rates is given in Table VIII of the appendix. In valuing the benefits to widows and children the statistics of the fund itself have been made use of as far as possible, but the rate of remarriage of widows has been taken from the statistics of ihe general population (widows and spinsters), and the death-rates of widows and children from Dr. Farr's Healthy English Mortality Tables. it has been assumed that all male and female contributors will retire at the ages of sixty-five and sixty respectively if they have not retired before reaching these ages. 8. The valuation balance-sheet is given in detail in Table IX, a summary being as follows :— Liabilities. £ Value of contributors' pensions already granted for £56,744 per annum ... ... 464,919 Value of widows' and children's pensions already granted for £4,226 per annum ... 37,384 Value of prospective pensions (to present contributors) for back service ... ... 1,692,148 Value of prospective pensions (to present contributors) for future service ... .. -1,323,625 Value of prospective pensions to widows and children of present contributors .. 375,842 Value of return of contributions on death or withdrawal ... ... ... ... 352,464 £4,246,382 Assets. £ Accumulated funds ... ... ... ... ... ... ... .. 537,914 Value of contributors' future contributions ... ... ... ... ... 1,327,002 Value of present and future Government subsidies ... ... ... ... 2,381,466 .£4,246,382 9. Compared with the previous valuation, the liabilities show an increase of £1,287,266, and the funds and value of future contributions an increase of £637,908, making a net increase in the Government's liability of £649,358. This is chiefly accounted for by increases in the number of contributors and in the salaries on which future pensions are to be based. The pensions have increased from £39,944 per annum to £60,970; the number of contributors from 8,371 to 10,809; and the salaries from £1,358,119 lo £1,820,379. The average salary per contributor has increased from £162 to £168, and the additions being greater at the older ages have had a greater effect on the liability. 10. The Act (section 48 (2)) requires the report to be so prepared "as to show the state of the fund at the close of the period, having regard to the prospective liabilities and assets and the probable annual sums required by the fund to provide the retiring and other allowances falling due in the ensuing three years without affecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." This has been taken to mean that the estimated pensions falling due during the three years following the valuation are to be divided into two parts—viz., (a) containing that part of the pensions provided for by the contributions, and (b) the remainder, which includes the pensions for service prior to joining the fund, and (as the contributions are insufficient to purchase full benefits for even future service) such part of the pensions for years of contribution as the contributions are not sufficient to provide for. The first is clearly a liability which should be borne by the fund, but the second is not, and it is assumed that the intention of section 49 is that it should be paid for by a subsidy, to be increased from time to time if necessary according to the Actuary's report. As the contributions at most can only have been paid fpr six years, while many of the pensions granted are for forty years' service, the amount to be paid by subsidy at present is much the larger, but the portion provided out of the contributions shows a steady increase. The estimated pensions falling due during 191.4, 1915, and 1.916, and the parts provided by the contributions and to be paid by subsidy respectively, are as follows : — . , , 1914. 19if>. 1918. Required for £ £ £ Current ordinary pensions ... ... ... ... 53,437 50,225 47,095 New pensions and family pensions ... ... ... 13,227 24,440 35,963 66,664 74,665 83,058 Deduct amount of pensions provided by contributions ... 6,501 8,379 10,542 Subsidies required for ensuing three years... ... ... 60,163 66,286 72,516

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I have to report, therefore, that in addition to the annual subsidy of £48,000 now beingpaid, further subsidies of £12,000, £18,000, and £25,000 will be required for the years 1914', 1915, and 1916 respectively, or an average of about £18,000 pef annum. 11. The subsidies paid to the fund so far have in reality been old payments in a new guise, taking the place of compensation for loss of office and gratuities; for while the Government's total contribution to the fund for the six years has been £156,500, the compensation the pensioners would have been entitled to if they had not accepted pensions was £149,554. This sum is computed only to the date these pensioners joined the fund, whereas if there had been no fund there would have been further compensation from that date to the date of retirement, bringing the sum in excess of the actual subsidy. There has also been a great saving in gratuities, for while these amounted to £26,210 for the five 3'ears prior to the establishment of the fund, for the next succeeding five years they only amounted to £6,065, or a decrease of over £20,000. Proposed Alterations and Amendments to the Scheme. 12. One of the principal amendments that has been suggested is to alter the form of the Government subsidy to a fixed percentage of the annual salary. The present subsidy is based nn the pensions paid in excess of those that the contributions will produce, an amount which for many years will be an increasing one. Every increase in the subsidy appears to involve new legislation, with its consequent delay, and a more automatic method of obtaining the necessary vote is much to be desired. A subsidy based on the annual salaries of contributors would, as long as new entrants are admitted, provide a yearly payment increasing with the growth of the service, and. would pay the- deficiency of the contributions in the case of new entrants, and also provide a certain amount which could be placed against the liability for the older members. If ever the fund were closed for new entrants, however, the present method would have to be reverted to, or some other means found of meeting the deficiency. The Government guarantee of the solvency of the fund should therefore be retained in addition to the subsidy. 13. The annual salaries of the contributors at 31st December, 1913, were £1,820,379 per annum, and 3J per cent, would produce £63,713, increasing at the rate of about £5,000 per annum, as compared with the estimated subsidies of £60.000, £66,000, and £73,000. for the years 1914, 1915, and 1916 respectively. The subsidy required increases rather faster than 3J per cent, on the salaries, and I would recommend that 4 per cent, be paid. As far as can be seen at present a 4-per-cent. subsidy would provide for the deficiency in the contributions for future service and gradually liquidate the liability for the pensions for back service. 14. I may say that in the schemes appioved under the Local Authorities Superannuation Act, 1908 (the contributions and benefits under which are identical with those of the Public Service scheme, save that pensions for back service are not payable out of the fund), the least subsidy paid is equivalent to 4 per cent, of salaries. The schemes and subsidies are as follows :- Wellington Harbour Board: Subsidy 65 per cent, of the members' contributions, equivalent to 5 per cent, of the salaries. Auckland Harbour Board : Subsidy 60 per centi of the members' contributions, equivalent to 4 per cent, of the salaries. Buller County Council: Subsidy 80 per cent, of the members' contributions, equivalent to 7 per cent, of the salaries. As already stated, in these schemes pensions are not payable out of the- fund for back service. 'I he Act, however, gives power to pay them out of the ordinary revenues of the local authority, and in addition to the subsidies mentioned the Wellington Harbour Board pays full pensions, and the Buller County Council half-pensions, for back service, thus greatly increasing the nominal subsidies and thereby actually placing the funds in a stronger position than the Public Service scheme. 15. Increasing the Allowance to Widows under Section, Z/.2 of the Act. —In this connection I have been asked to make a computation (1) of the effect of increasing the widow's allowance lo £52 per annum by («) a reduction of the contributor's retiring-allowance if he survives, (b) increased contributions; the election of the contributor to the- proposed reduction of his retiringallowance to be made not less than three years prior to his retirement: (2) what amount of annual contribution would be required from the Consolidated Fund to make the above increase without (a) reduction of the contributor's retiring-allowance or (b) increased contributions. 1.6. If an equivalent reduction is made in the contributor's retiring-allowance an increased allowance could be given to his widow without extra cost to the fund, provided it is sufficiently guarded against adverse selection. It is quite clear, however, that the fund would not be sufficiently protected by the selection being made " not less than three years before retirement," and a strict medical examination would be absolutely necessary before allowing any transfer of pension. For example, an officer in bad health would risk very little by giving up part of his pension for the benefit of his widow, even if the selection had to be made (say) five years before death or retirement, for if he died before retirement his widow would be no worse off than under the old arrangement; while if he lived to retire, by sacrificing a part of his pension when by reason of his bad health his pension would only be worth a few years' purchase (if any), he would have secured a substantial annuity for his wife. The fund, in fact, would have everything to lose and nothing to gain. I see no- particular objection, however, to a pensioner able to pass a medical examination being allowed to surrender a certain portion of his pension to purchase an annuity payable to his present wife if she survives him, the calculation to be based on the ages of the pensioner and his wife at the date of the surrender. The present allowance is payable to the contributor's

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or pensioner's widow, who is not necessarily his present wife, but this contingency could hardly be allowed for without further experience, and under the proposed arrangement the increased annuity would only be payable should the existing wife be the survivor. The following example shows the relative values of an annuity to a man aged 65 and a reversionary annuity to his wife, assuming various ages and using the British Offices Life Annuity Experience with 3£ per cent, interest. Value of an annuity of £100 per annum to a man aged 65, .£930. Value of Annuity of £34 Reduction in Pension a i W'fe (£s2—£lß) to Wife, commencing necessary to produce on the Deatli of Husband. the Annuity to Wife. £ £ 60 ... 150 ... 16 59 ... 231 ... 25 40 ... 302 ... 33 30 ... 365 ... 39 The age of the wife would therefore have a very material effect on the transaction. 17. Paging for an Increase in the Annuity to the Widow by an Increased Contribution. — The cost, as I have already shown, depends in individual cases on the state of health of the husband and the age of the wife (if any); but on the assumption that all'male contributors are compelled to pay the increased contributions, whether they are married or not, the cost per cent, of salary would be as follows : — Premium ; to be returned Premiums not to Age. on Death or Withdrawal. be returned. Percentage of Salary. Percentage of Salary. 15 :.. L 166 ... -760 20 ... 1-343 ... -926 25 ... 1-649 ... 1-206 30 ... 2-035 ... 1-588 35 ... 2-459 ... 2-029 40 ... 2-936 ... 2-544 45 ... 3-620 ... 3274 50 ... 4-864 ... 4-561 55 ... 7-787 ... 7-141 60 ... 14-551 ... 14-396 18. Paying the Cost of the Increase out of the Consolidated Fund. —The value of the prospective pensions to widows of £18 per annum is £315,254, while the value of the pensions granted is £28,085, making a total of £343,339, and an additional £34 per annum would add £648,529 to the present liability. 19. Increase of Allowance on Retirement as medically unfit. —If a minimum pension is decided on, as has been proposed, I think it should apply to all cases of retirement, whether for ill health, old age, or length of service—in fact, the vast majority of the small pensions have been granted for retirements in the ordinary course under section 35. A minimum pension of £52 has been suggested for all classes of retirement, and under the Education Act, 1908, section 233, this forms part of the benefits for original members who have elected to remain subject to the provisions of that Act instead of accepting the more liberal benefits under the Public Service Classification and Superannuation Amendment Act, 1908. Of the current pensions payable out of the Public Service Superannuation Fund, 135—viz., 116 males and 19 females — are under £52 ptr annum, of which 108 have been granted for old age or length of service and 27 for ill health, and the additional cost of bringing these up to £52 would be £2,776 19s. Bd. per annum; capital value, £22,719. The additional capital cost of increasing future pensions to a minimum of £52 per annum would be about £76,242, making a total increase in the liabilities of the fund of £98,961. As the scheme embraces all classes of public servants, many of whom have entered late in life, while others do not devote their whole time to the service, there are a number of contributors whose salaries will probably never reach the amount of the proposed minimum pension of £52 per annum. An absolute minimum applying to all cases is therefore impossible. For example, the following cases appear amongst other small salaries in the data supplied for females : — Contributor. 31st December 19]:!. &!ar >'- Servioe - No. 6678 ... ... ... 59 £15 1.2 years. No. 2716 ... ... ... 65 £50 3 years. and the introduction of a minimum pension would enable these contributors to retire at once on allowances in excess of their present salaries. Another point is that retirements for ill health, such as incipient phthisis, are not infrequently made with a view more to remove the risk of infection to other members of the staff than to the absolute inability of the officer to perform his duties, and his earning-capacity outside the Public Service may not be seriously impaired. If in view of the increased liability a minimum pension would entail, it is still considered advisable, I would suggest that in lieu thereof the Board be given power to inorease pensions up to £52 per annum, and not exceeding two-thirds of the annual salary, taking into account the particular merits of each individual case. Thus salary, length of service (whether wholly or partially employed in the Public Service), the loss of earning-power, and the number of dependants, &c, could all be given their due weight and

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the increase be fixed accordingly. This would somewhat reduce the liability of £98,961 already stated, and, while meeting cases of real hardship, would prevent the fund being imposed upon. 20. Investment of the Funds. —l would strongly support the endeavour which is being made to obtain a more remunerative method of investing the funds. The interest (4| per cent.) which is now being received is considerably under the market rate, and the probable effect of the war will be to still further increase the demand for money, and consequently the rate of interest. At present the excess interest goes to swell the profits of the Public Trust Office instead of increasing the stability of the fund, and if a higher rate of interest were earned the Government subsidy might eventually be reduced. As the subsidy is increasing, it is necessary to take a somewhat conservative view in considering proposals which will augment the liabilities of the fund, but this would not be so essential if a higher rate of interest could be looked forward to, and in a large fund, such as the Public Service Superannuation Fund will become, a rise of even \ per cent, in the rate of interest will make a very large increase in the annual revenue. 21. In regard to the proposal that a special investment committee should be set up, for the purpose of investing the moneys belonging to the Public Service, Government Railways, and Teachers' Superannuation Funds, now invested through the Public Trustee, I would point out that merely investing the money through the same Board does not necessarily involve any other change whatever, and each scheme could be as completely independent of the others as it is at present. It would simplify the investments to deal with the money as a whole, and not allocate any individual investment to any particular fund, and besides its simplicity it would assure each receiving the same rate of interest and would prevent any possible loss through a bad investment falling wholly on one fund. The uninvested balance would also be much smaller than if each fund were invested separately, and the interest, less losses (if any) and the expenses of investing the moneys and collecting the interest, could be allotted according to the average amount to the credit of each particular fund. A higher rate of interest would materially strengthen the financial position of the funds, and probably this could best be secured by pooling the moneys for investment purposes, as stated above. Other questions, such as the subsidies to be paid to the various funds, appear to have no particular connection with this matter, and at present there seems to be no necessity for associating them for any purpose other than that of investment. Percy Muter, F.1.A., Acting-Actuary to the Government Insurance Department. Wellington, Ist March, 1915.

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APPENDIX. TABLE I. The Benefits and Contributions provided cor by the Act. [ The contributions vary according to the age at the time when the first contribution I becomes payable, and are as follows :— | Age 30 and under .. .. . . . . 5 per cent, of pay. Over 30 and not exceeding 35 . . 6 ~ I „ 35 „ 40 7 I „ 10 „ 45 8 |I; 45 „ 50 .. .. ..9 I „ 50 10 'I. On Attainment of Pension. Males at Age 65, or after Forty Years' Service ; Females at Age 55, or after Thirty Years' Service. (I.) A pension of one-sixtieth of yearly salary for each year's service, with a limit of forty-sixtieths (two-thirds) of salary. Maximum pension for entrants after 24th December, 1909, £300. (2.) Or the option, in lieu thereof, of a return of total contributions. (Note. —The Minister in charge of a Department may retire contributors on pension in the following cases : — (a.) Where the age of a male contributor is not less than 60, or of a female contributor not less than 50. (b.) Where the age of a male contributor is not less than 55, if his length of service is not less than thirty years, (c.) Where the length of service of a male contributor is not less than thirtyfive years. In any such exceptional cases the Minister may impose upon the retiring contributor such terms and conditions as to payments into the Fund or otherwise as he thinks fit.) 11. On retirement before Pension Age (on the Grounds of being medically unit for Future Duty). (1.) At any time, on the certificate of two doctors approved by the Board, a pension . of one-sixtieth of yearly salary for each year's service, limited to forty-sixtieths. bene ts .. -< jQ r option, in lieu thereof, of a return of total contributions. (Where officers of the Police Force are incapacitated by injuries rsceived on. duty the Board may increase the pension up to three-fifths of salary.) 111. On Retirement before Pension Age (on other Grounds than Medical Unfitness). (1.) On voluntary retirement or dismissal for misconduct, a return, of total contributions. (2.) On compulsory retirement for any reason other than misconduct, after twenty years' service,-a return of total contributions with. 3J per cent, compound interest. IV. At Death, whether before or after becoming entitled to a Retiring-allowance. (1.) Leaving no widow or children : A return of total contributions less any sums received from the Fund during lifetime. (2.) Leaving a widow :■ — (a.) £18 yearly during widowhood, or (b.) A. return of total contributions, together with such, compensation (if any) as the contributor would have been entitled to receive from the Consolidated Fund on compulsory retirement, less any sums received from the Fund during lifetime. (If death occurs before retirement the compensation is paid from the Consolidated Fund : if after retirement, from the Superannuation Fund.) , (3.) Leaving children : ss. weekly to each child until age 14. (Note. —The contributions and pensions are payable monthly, and the pensions are computed on the average salary for the last three years.) *

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TABLE II. Statement of Progress of Active Membership.*

TABLE III. Particulars of Discontinuance of Active Membership.*

TABLE IV. Statement of Progress of Pensions.*

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New Members. Pnm Year. Annual Number. Salaries. Contribu- Salaries, tions. £ £ £ .908 .. 7,540 1,112,099 80,526 37,769 909 .. 717 77,877 5,290 58,268 .910 .. 1,520 205,427 12,814 73,936 911 .. l,253i 134,065 8,196 81,431 912 .. 1,471. i 145,396 8,980 96,863 913 .. 1,428 123,493 7,047 118,571 ise by otion. Annual Contributions. £ 2,301 3,425 4,509 4,906 5,730 7,022 D Number. iscontinued. Annual Salaries. Contributions. "I Total in : Number Force at End of Year Annual Salarie Contri buttons JO £ 1,107,346 79,364 1,140,077 79,504 1,358,119 92,589 1,504,441100,670 1,666,231109,840 1,820,379,118,006 310 680 472 484 584 646 £ £ 42,521 ' 3,463 103,414 8,575 61,322 ! 4,238 69,174 : 5,021 80,469 : 5,540 87,916 5,903 7,236 7,323 8,371 9,140 10,027 10,809 Totals 13,935 1,798,357 122,853 466,838 I 13,935 1,798,357 122,853 466,838 27,893 3,126 444,816 , 32,740 1 1 i

By Deat Year. || p,<a ■ o © gfflJ I §8.8 in. By 1 drav Disn mth76.1 < I' lissal. ft'S +j o B»s p p j I Old J c Age or Length of Service. By Peni lions. Medi ically unfit. By T: to < Fu ran sf either nds. Total I discontinued. a as 11 a I L U a a Si pP as a w Q m 3 § K s h Op© M 6 GnP P * u Q A a a SB S g a si i.S »2 a) M p P K -jj gig § a S 'is a§s §s < P4 fa 0> a p ] » 3 it 3.2 •» 2 a & IB op a° 33 P S3 Si da «S u o o svs a w a) "> p O q 2 2 S a§a gg £ £ 437! 190 676 417 380 387 292JI 354 784 450 1,043 516 3,612 2,314 £ 421 3,454 4,964 5,853 8,388 9,364 74 154 42 73 64 73 £ £ £ 6,658 17,039 4,147 8,681 6,992 8,716 £ £ 1,838 1,958 1,101 1,314 1,017 59.1 £ 22 5 13 10 21 5 £ £ 484 8,933 3,62819,673 5,745 5,628 7,712 10,237 10,692 8,793 10,71110,350 1908 ..24 41 1909 .. 37 148 1910 .. 28 768 1911 .. 33 1,634 1912 .. 45 2,222 1913 .. 40 1,149 6,658 21 17,039 ■** *■»«"" A 147 4,147 215 8,631 20 19 13 19 19 18 61 78 2 I 5 6 4 22 310 630 472 484 584 646 6,992 115 8,716 Totals .. 207 5,962 32,444 480 351 52,183 52,183 103 139 7,819 76 3,126 38,972 63,614

Attainment of Pension Age or Length o: (Sec. :-15, &c.) Service. Retired medically unfit. (Sec. 36, &e.) Year. Cra: Irani Number. nted or •ferred. Void by Death or Expiry. In Force. Gfrai tram Number. nted or sferred. Void by Death j - „ or Expiry. inJJoree. N b «m- Pension. ***£■ Pension. Pension-. Number. Pension. Number. Pension. Pension. 1908 1909 1910+ 1911 1912 1913 74 153 84 72 64 71 £ 6,658 17,038 8,737 8,631 6,992 8,716 1 4 12 23 22 18 £ 57 324 945 2,593 2,124 2,003 73 222 294 343 385 438 £ 0,601 23,3.15 31,107 37,145 42,013 48,726 20 19 56 19 18 11 £ 1,838 1,959 4,706 1,314 1,017 591 I £ £ 20 1,838 4 677 35 8,119 5 680 86 7,146 10 621 95 7,839 9 526 I 104 8,330 14 903 j 101 8,018 42 3,407 £ 1,838 3,119 7,146 7,839 8,330 8,018 Totals 518 56,772 80 8,046 143 11,425 ith of Con: Pensio tributor m. (Sei ,mily Det or Pom io is. 42 and 4 iner. Fi IS, &c.) Total Pensions. Year. Granted or Void by Death transferred. or Expiry. In Force. Granted or tra-nsferred. In Force. Void. | tension. «™ ) Pension. * N ™" | Pension. irl^i N» r | Pension. *™~ Pension. N b ™- Pension. 908 .909 .910+ .911 .912 .913 30 47 40 40 72 90 £ 455 751 635 625 1,086 1,355 1 3 6 11 14 12 £ 13 39 98 163 197 171 29 73 107 136 194 272 £ 442 1,154 1,691 2,153 3,042 4,226 124 219 180 131 154 172 £ 8,951 19,748 14,078 10,570 9,095 10,662 2 11 23 44 45 44 £ 70 1,040 1,723 3,377 2,847 3,077 122 330 487 574 683 811 £ 8,881 27,589 39,944 47,137 53,385 60,970 Totals 319 4,907 47 681 980 73,104 169 12,184 ad from Annual Bi . -Hi icludes lensioneri transfer * Compil sports. -red from 'olice Provident Fund.

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TABLE V. Present Annual Pay and Contributions of Officers now in Service.

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Age attained. No Male. Number. umber. Female. Present Annual Pay. Present Annual Contributions. Male. Female. Age attained Male. Female. 78 74 73 72 71 70 69 68 67 86 65 84 83 82 61 80 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 £ 160 351 189 410 683 482 1,547 1,285 1,739 4,920 8,494 10,082 12,195 11,195 19,445 16,389 16,948 22,315 25,407 33,288 33,391 27,774 29,108 30,968 33,467 27,667 28,729 34,126 31,193 39,584 40,796 38,975 37,820 38,016 39,660 42,235 39,671 44,641 56,136 47,959 42,797 48,899 48,756 54,291 47,771 44,497 48,853 51,194 51,501 45,095 37,865 40,804 44,193 38,789 31,316 26,828 22,328 21,630 17,336 7,675 2,400 150 £ £ 16-0 35-1 18-9 410 68-3 48-2 154-7 128-5 173-9 4920 849-4 994-9 1,200-1 1,1060 1,915-4 1,622-5 1,665-3 2,211-6 2,447-2 3,115-4 3,020-4 2,493-5 2,592-5 2,775-2 2,895-5 2,234-0 2,308-3 2,735-2 2,457-7 2,990-4 2,884-2 2,742-8 2,616-8 2,611-5 2,599-7 2,594-6 2,435-9 2,7121 3,358-9 2,729-5 2,263-6 2,5930 2,522-3 2,774-2 2,424-9 2,227-6 2,442-7 2,559-7 2,575-0 2,254-7 1,893-2 2,040-2 2,209-7 1,939-5 1,565-8 1,341-4 1,116-4 1,081-5 806-8 383-8 1200 J 7-5 £ I 2 I 3 4 3 4 5 6 17 31 37 41 42 71 63' 65 77 97 114 118 101 102 111 127 103 108 135 133 157 167 168 161 171 178 202 184 210 263 230 220 251 255 279 266 249 276 298 307 285 253 294 341 337 319 336 329 373 327 152 48 3 I I I "2 1 2 2 3 5 7 3 8 10 6 9 5 8 8 13 19 8 16 14 15 21 15 22 26 23 23 26 32 28 39 36 47 58 56 58 60 71 79 62 88 70 43 30 12 8 120 200 105 285 115 334 504 749 319 980 1,156 790 1,115 666 740 1,065 1,570 2,569 1,028 2,206 1,980 1,887 2,502 1,897 2,879 3,214 2,697 2,838 3,098 3,992 3,015 4,441 4,320 4,896 6,203 5,480 5,485 4,858 5,847 6,249 4,523 6,128 4,627 2,811 1,790 630 467 12-0 200 10-5 28-5 11-5 33-4 50-4 74-9 310 92-4 105-6 71-1 98-4 55-5 60-5 86-3 125-6 206-1 75-3 161-8 142-7 134-5 172-4 121-6 177-3 198-3 163-8 167-3 168-9 211-9 195-2 229-2 216-0 244-8 310-2 274-0 274-3 242-9 292-4-312-4 226-2 306-4 231-3 140-6 89-5 31-5 23-4 78 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 80 -19 48 47 46 15 -1-1 43 12 ■11 10 39 38 37 36 35 34 33 32 31 SO 29 28 27 2(1 25 21 23 22 21 20 19 18 17 16 15 14 Totals 9,611 1,198 1,704,408 115,970 111,296-6 6,709-8

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TABLE VI. Classification of Pensions granted from 1st January, 1911, to 31st December, 1913, inclusive, showing the Ages at which they were granted.

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Attainm Attainm< Length ( Widows and Children (Sec. 42, 43, &c). * °a a I a.2 a p w a o a C p <D VL a cl. it *g Of J£ Cm ALLainui Longth < Age at which Pen-ion Numb granted. Bnt of Pension Age or >f Service (Sec. 35, &c). Retire ( id mei ;Sec. 3 dicallv unfit MS, &c). Toti Ll, Numb er. Amount of Pension Total. Numbi >r. Amount of Pension. Number. Amount of Pension. M. F. i" ' 'i M. F. | 3 p M. F. Total. M. F. £ s. d. 53 8 0 62 2 0 36 0 0 74 2 0 15 2 0 400 10 0 561 4 0 I,230 17 0 5,543 3 0 985 7 0 906 7 0 2,061 9 0 1,709 8 0 1,287 4 0 1,241 11 0 I,668 0 0 1,809 5 0 2,387 19 0 1,954 0 0 1,337 9 0 349 6 0 180 10 0 375 16 0 323 0 0 224 7 0 90 0 0 23 4 0 85 6 0 146 12 0 259 18 0 78 13 0 36 0 0 114 6 0 47 8 0 112 15 0 35 2 0 18 0 0 211 8 0 105 1 0 154 9 0 144 0 0 62 8 0 54 0 0 52 17 0 18 0 0 93 4 0 24 16 0 52 1 0 31 2 0 18 0 0 117 0 0 104 0 0 52 0 0 143 0 0 78 0 0 130 0 0 104 0 0 78 0 0 130 0 0 104 0 0 39 0 0 117 0 0 65 0 0 208 0 0 13 0 0 £ s. (1. 1 53 8 0 1 44 2 0 £ B. d. 77 75 73 71 70 68 67 66 65 64 63 62 61(id 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 27 26 24 23 22 13 12 II 10 9 8 7 6 5 4 3 2 1 0 * £ 77 .. 1 j .. 75 .. 1 .. 73 71 .. 2 .. 70 .. .. 1 68 . . 4 ! .. 67 .. 6 ! .. 66 .. t 13 : .. 65 . . ! 59 ! .. 64 .. 8 .. 63 .. 9 11 82 .. 16 ! .. 61 .. 9 .. 60 . . .9 I 59 .. 6 i 3 58 .. 7 ; 1 57 .. 10 .. 56 .. 17 ! .. 55 .. 14 I 1 54 .. j 4 1 53 .. 1 .. 52 .. 1 .. 51 .. 1 .. 50 49 48 47 46 45 44 43 .... .. 42 .. ! .. .. 41 .. .. .. 40 .. • • 39 S38 .. 37 .. .. I .. 36 .. .. .. 35 .. , .. : .. 34 33 32 31 .. .. ■• 30 29 27 26 24 23 22 13 12 11' 10 9 8 7 6 5 4 3 !:: :: :: 0 .. •• * 2 74 2 0 1 15 2 0 4 400 10 0 6 561 4 0 13 l,2:i() 17 0 59 5,507 3 0 8 967 7 0 10 852 7 0 16 2,025 9 0 9 1,632 12 0 10 1,269 4 0 9 1,033 3 0 8 1,318 1 0 10 1,743 6 0 17 2,193 II 0 15 1,739 18 0 5 1,234 16 0 1 161 10 0 1 126 10 0 1 155 13 0 1 1 2 1 4 6 13 50 8 10 16 9 10 9 8 10 17 15 5 1 1 1 .. 1 .. 3 .. 3 .. 1 .. 2 .. 2 .. 2 i .. I. .. I 2 .. 2 .. .. 1 1 .. 1 .. 4 .. 1 .. 1 .. .. 1 1 .. .. 1 1 3 3 I 2 2 2 1 1 2 2 76 16 0 172 8 0 313 19 0 65 19 0 176 8 0 178 2 0 84 13 0 169 16 0 184 3 0 215 0 0 206 7 0 23 4 0 13 6 0 110 12 0 223 18 0 6 13 0 78 6 0 11 8 0 112 15 0 35 2 0 i 18 2 36 2 36 1 18 3 54 2 ! 36 1 18 2 36 2 36 1 18 2 36 1 18 1 , 18 3 54 2 36 6 108 I 18 5 90 4 72 2 36 2 36 4 | 72 2 36 2 36 2 36 1 1 '2 4 6 13 59 8 9 16 10 9 9 10 11 I 9 16 6 2 1 2 2 2 1 1 4 1 i 1 1 2 2 2 .. ! 2 1 i 1 j .. j 4 j .. [ 6 ..I 13 I 2 j 61 1 9 4 I 13 2 j 18 .. I 10 2 , 11 5 I 14 3 I 13 11 i 1 20 3 19 2 8 1 3 3, 4 2 4 6 j 8 1 ' 3 5 ' 5 1 1 4 5 2 3 2 6 4 5 2 ! 2 2 | 3 3 3 1 I 1 i 1 1 2 6 . 5 6 3 (i 8 I 8 3 ! 4 3 ; 3 1 2 1 1 1 4 1 2 3 1 2 | 1 1 ' 9 8 4 11 6 10 8 53 < 6 10 8 3 9 5 16 I 1 i 4 .. 1 3 .. i .. 175 8 0 15 1 0 100 9 0 88 0 1 j 18 2 36 5 ; 90 3 : 54 8 j 144 3 I 54 3 54 1 18 1 18 1 18 4 1 3 1 "i :: 34 17 0 i i 3 '.'. 1 .. 1 .. 1 .. 75 4 0 24 16 0 16 1 0 13 2 0 2 36 1 18 I 18 9 117 8 104 4 52 II 143 6 78 10 130 8 104 6 78 10 130 8 104 3 39 9 117 5 65 16 208 II 13 3 1 1 1 61 ! 53 Totals 198 | 9 2,922 I 0 I 202 3,006 304 153 :57 30,327 16 0 207 24,330 15 0 45 3 48 •Ni it stat ;ed. Adj ui sted to agree w: 1th annual repi at

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TABLE VII. EXPERIENCE TABLE. Rates per Cent. per Annum of Withdrawal, Mortality, Retirement, and Increase of Salary.

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Contributir ig Members: '. ilales. Contributini I Members: Females. Ago. Rate of Withdrawal (Public Service Superannuation Fund). Rate of Mortality (combined New Zealand Superannuation Funds). Rate of Retirement (combined New Zealand Superannuation Funds). Rate of Increase of Salary (Public Service Superannuation Fund). Rate of. Withdrawal (Public Service Superannuation Fund). Rate of Mortality (assumed). Rate of Rate of Retirement Increase of (combined Salary New Zealand (Public SerSuper- vice Superannuation annuatlon Funds). Fund). Age. 15 16 ■17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 6-50 6-40 6-28 6-16 6-03 5-90 5-75 5-61 5-46 5-30 5-13 4-95 4-76 4-55 4-30 4-10 3-90 3-73 3-57 3-43 3-32 3-22 3-12 3-02 2-92 2-82 2-72 2-62 2-52 2-42 2-32 2-22 2-12 2-01 1-91 1-81 1-70 1-60 1-50 1-40 1-30 1-20 1-09 0-98 0-88 0-73 0-52 0-20 0-20 0-20 0-20 0-20 0-21 0-21 0-22 0-23 0-24 0-25 0-26 0-27 0-28 0-29 0-30 0-32 0-34 0-36 0-38 0-40 0-42 0-44 0-46 0-49 0-52 0-53 0-54 0-55 0-57 0-59 0-60 0-63 0-67 0-70 0-73 0-78 0-82 0-86 0-92 0-98 1-05 1-15 1-25 1-37 1-52 1-69 1-88 2-12 2-40 0-10 0-10 0-10 0-10 0-10 0-10 0-10 0-10 0-12 0-14 0-16 0-18 0-20 0-20 0-20 0-21 0-22 0-23 0-24 0-25 0-26 0-27 0-28 0-29 0-30 0-41 0-53 0-68 0-88 1-12 1-37 1-69 2-07 2-52 3-05 3-74 4-57 5-81 7-91 13-00 21-20 29-50 2-4 3-6 6-6 9-6 13-2 14-0 14-0 14-0 13-0 10-6 8-8 7-4 5-8 4-8 4-2 3-8 3-8 4-2 4-2 3-8 3-8 3-8 3-6 3-4 3-4 3-8 3-8 4-0 4-2 4-8 4-6 5-0 5-4 5-6 6-6 5-6 3-8 2-4 1-2 0-8 j 300 3-15 3-40 3-90 5-50 7-40 9-30 11-10 12-80 13-70 13-90 13-90 13-70 13-30 12-80 12-00 11-00 10-00 9-20 8-60 8-10 7-75 7-40 7-10 6-90 6-70 6-50 6-20 5-90 5-50 5-10 4-55 3-85 0-22 0-23 0-24 0-25 0-26 0-27 0-29 0-30 0-31 0-31 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-33 0-33 0-33 0-33 0-34 0-S34 0-36 0-38 0-40 0-44 0-48 0-52 0-57 0-63 0-69 0-76 0-83 0-90 0-98 1-07 1-15 1-25 1-34 1-45 1-56 0-25 0-25 0-25 0-25 0-25 0-S10 0-40 0-50 0-60 0-70 0-88 1-08 1-38 1-83 2-58 3-63 4-63 5-90 7-43 9-25 11-88 14-63 17-38 19-88 21-30 22-50 25-00 0-8 1-3 1-6 1-9 2-7 3-7 3-5 3-9 4-1, 4-2 4-6 5-7 6-3 5-9 5-5 3-3 2-8 2-4 2-0 1-6 1-5 1-4 1-1 0-9 0-7 0-8 0-6 0-4 0-3 0-4 0-1 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

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TABLE VIII. LIFE AND SERVICE TABLE. Based upon the Rates per Cent. per Annum of Withdrawal, Mortality, and Retirement given in Table VII.

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MALES. fema: JES. .. Existing With- |n 0 „n, a KetireA § e - in Service, drawals. "eaths. men(Si 15 .. 100,000 6,500 200 16 .. 93.S100 5,971 ! 186 17 .. 87,143 -. 5,473 175 18 .. 81,495 5,020 163 19 .. 76,312 4,602 153 20 .. 71,557 4,222 150 21 .. 67,185 3,864 141 22 .. 63,180 3,545 139 i 23 .. 59,496 3,248 137 59 24 . 56,052 2,970 135 56 25 .. 52,891 2,714 132 53 26 .. 49,992 2,475 130 50 27 .. 47,337 2,253 I 128 47 28 .. 44,909 2,044 126 45 29 . . 42,694 : 1,835 j 124 j 43 30 .. 40,692 ' 1,668 j 122 | 41 31 .. 38,861 1,516 ! 124 47 32 .. 37,174 I 1,387 126 52 33 .. 35,609 1,272 , 128 57 34 .. 34,152 1,171 I 130 61 35 .. 32,790 | 1,089 ! 131, 66 36 .. 31,504 I 1,015 ! 132 63 37 .. 110,294 945 I 133 61 38 .. 29,155 i 880 I 134 01 39 .. 28,080 I 820 I 138 62 40 .. 27,060 763 j 141 62 41 .. 26,094 710 > 138 ; 63 42 .. 25,183 660 j 136 I 63 43 .. 24,324 ; 613 j 134 ■ 63 44 . 23,514 | 569 134 63 45 . 22,748 ! 528 134 64 46 .. 22,022 489 132 64 47 .. 21,337 452 134 64 48 .. 20,687 416 139 85 49 .. 20,047 383 140 106 50 .. 19.418 351 142 132 51 .. 18,793 320 147 105 52 .. 18,161 290 149 203 53 .. 17,519 263 151 240 54 .. 16,865 236 155 285 55 .. 16,189 210 159 335 56 .. 15,485 186 163 390 57 .. 14,746 160 170 450 58 .. 13,966 136 175 522 59 .. 13,133 116 180 000 60 . . 12,237 90 186 711 61 .. 11,250 58 190 890 62 .. 10,112 .. 190 1,315 63 .. 8,607 .. 182 1,825 64 .. 6,600 .. 158 1,947 65 . . 4,495 .. .. 4,495 Average Salary. 48-6 51-0 54-6 61-2 70-8 84-0 98-0 1120 126-0 139-0 149-6 158-4 165-8 171-6 176-4 180-6 184-4 1.88-2 192-4 196-0 200-4 204-2 208-0 211-0 215-0 218-4 222-2 226-0 230-0 234-2 239-0 243-6 248-6 254-0 259-6 266-2 271-8 275-6 278-0 279-2 280-0 280-0 280-0 280-0 280-0 280-0 280-0 280-0 280-0 280-0 280-0 Existing in Service. 100,000 96,781 93,510 90,107 86,367 81,394 75,150 67,944 60,198 52,307 44,978 38,584 33,099 28,460 24,584 21,358 18,727 16,007 14,893 13,438 12,205 11,146 10,218 9,403 8,076 8,014 7,409 6,857 6,358 5,901 5,487 5,106 4,753 4,420 4,2S!2 4,007 3,740 3,431 3,083 2,686 2,265 1,845 1,455 1,126 856 629 Withdrawals. 3,000 3,049 3,179 3,51,5 4,749 6,024 6,989 7,542 7,705 7,166 6,252 5,363 4,534 3,785 3,147 2,563 2,060 1,661 1,370 1,156 989 864 756 668 598 537 482 425 375 324 280 233 183 Deaths. 219 222 224 225 224 220 217 204 186 163 142 122 105 91 79 68 60 53 48 43 40 36 33 31 29 28 20 26 26 26 26 27 27 28 29 30 31 31 30 28 26 23 19 16 13 Retirements. 37 34 30 28 26 28 35 40 44 48 56 64 75 93 123 160 196 237 278 317 367 393 394 367 310 254 214 629 Average Salary. 54-0 54-8 56-1 57-7 59-6 62-3 66-0 69-5 73-4 77-5 81-7 86-3 92-0 98-3 104-2 109-7 113-0 115-8 118-2 1.20-2 121-8 123-3 1.24-7 125-8 126-7 127-4 128-2 128-8 129-2 129-5 129-9 130-0 130-0 130-0 130-0 130-0 130-0 130-0 130-0 1.30-0 130-0 130-0 130-0 130-0 130-0 130-0 Age. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

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TABLE IX. SUMMARY OF PUBLIC SERVICE SUPERANNUATION RESULTS. Valuation Balance-sheet as at 31st December, 1913. Liabilities. Males— £ £ Value of 517 pensions for £56,065 os. Id. per annum already granted .. 457,626 ~ 138 pensions for £2,484 granted to widows of contributors or pensioners . . . . . . . . .. . . 28,085 „ 134 pensions for £1,742 granted to children of deceased contributors or pensioners .. .. .. .. 9,299 ~ prospective pensions for back service .. .. .. 1,635,454 ~ ~ for future service .. .. .. 1,258,159 ~ ~ to widows .. .. .. 315,254 to children .. .. .. 60,588 ~ return of contributions on death .. .. .. 20,904 „ „ on withdrawal .. .. .. 303,064 4,088,433 Females— Value of 22 pensions for £679 6s. 10d. per annum already granted . . 7,293 „ prospective pensions for back service .. . . .. 56,694 „ „ for future service .. .. .. 65,466 „ return of contributions on death or withdrawal .. .. 28,496 157,949 £4,246,382 Assets. Accumulated funds .. .. .. .. .. .. .. .. 537,914 Value of future contributions from males .. .. .. .. .. 1,277,915 ~ „ from females .. .. .. .. .. 49,087 subsidy of £48,000 per annum .. .. .. .. .. .. 1,200,000 ~ future increases in subsidy to be provided .. .. .. . . 1,181,466 £4,246,382

Approximate Cost 0/ Paper. —Preparation, not given : printing (13,600 copies), £35.

Price, tid.]

By Authority : John Mackay, Government Printer, Wellington.—l9ls.